How Asia, U.S. Stack Up in Airport Efficiency

Asian airports have something in common with airports in Europe: They’re far less efficient than their American counterparts.

That’s according to Tae Oum, lead author of a new airport efficiency study by The Air Transport Research Society at the University of British Columbia. Compared to those in the U.S., Asian airports have a lower productivity ratio, use more employees and pass more costs onto consumers and airlines, he says.

The annual report, first launched in 2001, ranks 195 airports and 26 airport groups based on their operational and managerial efficiency. To create the rankings, authors compared airports’ productivity inputs — expenses like labor, security, ground crew and electricity—with their outputs, namely the volume of takeoffs, landings, passengers and cargo, and how much they earned from non-aeronautical sources like concessions, parking and rental businesses.

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Since the 1978 Airline Deregulation Act, U.S. airports have streamlined their expenses and have been able to charge lower landing fees, says Mr. Oum. Part of this comes from outsourcing security and even management positions to expert firms.

Associated Press

Beijing International Airport last Thursday; China’s airlines and airports continue to have the worst flight delays in the world, according to a travel industry monitor.

Hartsfield-Jackson Atlanta International, the world’s busiest airport, was also ranked the most efficient globally, according to the study. With roughly 90 million passengers annually, the airport employs just 800 people by outsourcing to a U.K. firm, but still generates 63% of its revenue from non-aviation activities. Mr. Oum says a comparable airport outside the U.S. might employ 13,500 people and handle fewer flights.

This efficiency, however, doesn’t always translate to customer experience or speed, and the results may come as something of a surprise to passengers who’ve experienced wait times of up to two hours at U.S. airport checkpoints.

What they do influence is what airports charge airlines, a cost that is in turn passed on to consumers.

To be sure, Asian airports frequently outrank those in the U.S. and Europe in terms of customer experience and service standards. The only three airports to have received the highest 5-star ranking from U.K.-based aviation consultancy Skytrax based on service delivery are the Hong Kong, Seoul and Singapore international airports. Only two U.S. airports have made it as 3-star airports in the Skytrax survey.

China’s airports meanwhile have seen a high volume of delays. Beijing’s Capital International Airport ranked last among top international airports in reliability of takeoffs and landings with 82% of flights failing to leave on time. Shanghai’s Pudong International was the second-worst.

“Over time, this [efficiency score] will change as the Asian aviation market becomes more competitive and as China opens up competition,” Mr. Oum said.

Some Chinese airports have moved up in the rankings, and Mr. Oum believes the government’s decision to open its skies has led to an increase in traffic at airports like Haikou Meilan in Hainan Province.

“Even in the Communist world, if you open up and let the airport be entrepreneurial and airlines are open skies, they become more efficient and grow,” said Mr. Oum.

South Korea has once again taken the top spots in Asia, with Seoul’s Gimpo Airport ranking most efficient in the continent and Incheon International Airport coming in second.

Gimpo’s total operating revenue increased nearly 16% last year, among which 67% came from non-aeronautical sources. The airport was hugely underutilized, Mr. Oum says, after international flights were moved to the newly established Incheon. Gimpo has since used that space to create retail areas, duty free stores and concessions, and attracted several domestic and short international route flights.

Japan’s Kansai International Airport received the lowest efficiency score in Asia, and also had the highest combined landing and passenger fees for a Boeing 767 jet, at just under US$7,879 each.

The Air Transport Research Society, a special interest group of the World Conference on Transport Research Society, has produced the annual global airport benchmarking report since 2001.

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